Procter & Gamble Q4 Profit Beats Estimates; Organic Sales Up 7%

(RTTNews) - Procter & Gamble Co. (PG) reported that its fourth-quarter core earnings per share increased 17 percent year-on-year, driven by strong organic sales growth and core operating margin expansion. Currency-neutral core earnings per share were up 26 percent from the prior year. Excluding items, organic sales climbed seven percent, supported by a three percent increase in organic volume. Shares of Procter & Gamble were up more than 4 percent in pre-market trade on Tuesday.

For the fourth-quarter, core earnings per share was $1.10 compared to $0.94 in the previous year. Currency-neutral core earnings per share for the quarter was $1.18. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $1.05 for the quarter. Analysts' estimates typically exclude special items.

Fourth-quarter net loss per share was $2.12, significantly below prior year due to the one-time, non-cash charge to adjust the carrying value of Gillette Shave Care goodwill and trade name intangible assets.

Net sales for the fourth quarter were $17.1 billion, an increase of four percent versus the prior year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales progressed seven percent. Analysts were looking for revenue of $16.86 billion for the quarter.

The company generated $4.2 billion of operating cash flow in the quarter, with adjusted free cash flow productivity of 122 percent .

For fiscal year 2019, core earnings per share increased seven percent to $4.52. Currency-neutral core earnings per share increased 15 percent. Net sales were $67.7 billion, an increase of one percent versus the prior year. Excluding items, organic sales increased five percent, driven by a two percent increase in organic volume. Analysts expected the company to report profit per share of $4.47 on revenue of $67.42 billion.

For fiscal 2020, the company expects all-in sales growth in the range of three to four percent versus the prior fiscal year. P&G projects organic sales growth in the range of three to four percent. Core earnings per share are expected to increase four to nine percent (mid-to-high single digits) versus fiscal 2019.

P&G estimates it will pay more than $7.5 billion in dividends and repurchase $6 billion to $8 billion of common shares in fiscal 2020.